wanhua(SH:600309) 2 1 Shi Ji Jing Ji Bao Dao·2025-08-12 12:29Core Viewpoint - Wanhua Chemical is currently under performance pressure, but the secondary market shows optimism about the company's recovery from the cyclical bottom, driven by favorable market conditions and unexpected financial results [1][3]. Financial Performance - For the first half of 2025, Wanhua Chemical reported total revenue of 90.901 billion yuan, a year-on-year decrease of 6.35%, and a net profit attributable to shareholders of 6.123 billion yuan, down 25.1% [1]. - In Q2 2025, the company achieved revenue of 47.834 billion yuan, a year-on-year decline of 6.04%, but a quarter-on-quarter increase of 11.07%. The net profit for the same period was 3.041 billion yuan, down 24.30% year-on-year and 1.34% quarter-on-quarter [1]. - The unexpected financial performance led to a rise in the company's stock price [1]. Market Dynamics - The stock price of Wanhua Chemical increased by 2.34% to 62.90 yuan as of August 12, 2025, with a monthly increase of over 14% in July due to reduced TDI production capacity in Europe [2]. - Despite a shareholder reducing their stake, the stock's strong performance continued, supported by institutional optimism regarding the company's business prospects [3]. Business Segments - Wanhua Chemical's main business includes polyurethane (MDI, TDI), petrochemical, fine chemicals, and new materials. In the first half of 2025, the sales revenue from polyurethane products was 36.888 billion yuan, petrochemical products and trade generated 34.933 billion yuan, and fine chemicals and new materials contributed 15.628 billion yuan [4]. - The polyurethane segment faced weak demand for pure MDI products, with market prices around 18,800 yuan/ton, while TDI products maintained growth in the automotive sector, with prices around 12,400 yuan/ton [5]. Industry Outlook - The global TDI supply crisis, exacerbated by a fire at a major European plant, is expected to create a supply-demand imbalance, potentially benefiting Wanhua Chemical [8]. - The company has made significant efforts in cost control and raw material upgrades, which are expected to enhance profit margins for its products [9]. - The overall economic environment remains a concern, with potential impacts on the profitability of the chemical industry, indicating that a full recovery for Wanhua Chemical may take time [9].